OVERSIGHT OF SECURITIES SETTLEMENT SYSTEMS

A task, principally intended to promote the smooth functioning of securities settlement systems and to protect the financial system from possible "domino effects" which may occur when one or more participants in the securities settlement system incur credit or liquidity problems. The oversight of securities settlement systems aims at a given system (e.g. a securities transfer system) rather than individual participants. It is performed by the dedicated financial authority/authorities and/or the central bank in accordance with the local legal framework.